Single Answer MCQ
Q-00045465
In the context of loans, what does 'high interest' typically signify?
1
Lower borrowing costs
2
Increased repayment amounts
3
Lower risks for lenders
4
Higher creditworthiness of the borrower
Answer and Solution
Answer
B. Increased repayment amounts
Solution:
High interest typically signifies increased repayment amounts. Borrowers will pay back significantly more than what they initially borrowed due to the higher cost of borrowing.
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